Indonesia plans to boost research on producing low fuel-consumption car

Jakarta, May 3 (Xinhua-ANI): Indonesian President Susilo Bambang Yudhoyono said Thursday that the government plans to intensify research and development to manufacture eco-friendly cars which consume non-fuel energy or lower fuel as an effort to reduce fuel consumption in the country.

"We need to boost research and development on the eco-friendly cars or electric car,"President Yudhoyono told a cabinet meeting at the State Palace.

To support the plan, the president said the funds for the research would be increased.

The move is needed to be done with reducing possible increase of oil consumption by increased number of cars and motor cycles, he said, adding that the number of the vehicles rose over millions annually. "This is certain that the consumption of fuel is going to increase,"Yudhoyono said.

Indonesia's energy demand keeps rising by over 7 percent annually.

The country has struggled to boost oil production which dwindled in recent years due to aging wells and lacking of fresh investment.

Indonesia imports both crude oil and refined products as the country's oil production has started to decline since 1998 which led to its exit from OPEC in 2009.

Indonesia's oil production this year is targeted at 930,000 barrel per day. Last year, the country's oil production was expected to reach an average of 904,000 barrel per day, lower than the target of 945 barrel per day, due to technical problem and extreme weather.

Indonesia failed to reach its oil output target of 950,000 barrel per day in 2010 due to leaking in pipelines. (Xinhua-ANI)